February 22, 2024

The Growing Global Construction Industry is Driving the Methyl Methacrylate Market

Methyl methacrylate (MMA) is an organic compound that is widely used for manufacturing polymethyl methacrylate or PMMA. PMMA is widely used as an alternative to glass in applications such as optical lenses, glazing, lighting fixtures, sanitary and medical applications due to its advantages over glass such as lighter weight, shatter resistance and workability. MMA is also used as a raw material for the production of a variety of plastics such as acrylic sheets and molding/extrusion compounds as well as surface coatings and adhesives. The global construction industry has witnessed steady growth in recent years which has fueled the demand for sheet materials such as PMMA sheets used in buildings facades, signs and displays due to their durability and aesthetics. The growing demand for lightweight and durable alternative to glass from end-use industries such as automotive and electronics has also supported MMA consumption. The global Methyl Methacrylate Market is estimated to be valued at US$ 7,510.7 Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends witnessed in the MMA market is the increasing consumption in the automotive industry. Automakers are increasingly using PMMA sheets developed from MMA in vehicle interiors and exteriors to reduce weight and achieve fuel efficiency targets. Additionally, MMA producers are developing new MMA-based polymers and compounds with improved properties such as heat resistance and optical clarity to enable greater penetration into specialized applications such as aerospace glazing and lighting. Asian countries such as China and India represent major opportunities for MMA producers due to rapid infrastructure growth. China alone accounts for over 50% of global MMA capacity indicating the potential for further market expansion.

Porter’s Analysis

  • Threat of new entrants: The methyl methacrylate market requires high initial investments and regulatory norms for manufacturing, limiting the threat of new entrants.
  • Bargaining power of buyers: The presence of many suppliers and substitutes limits the bargaining power of buyers.
  • Bargaining power of suppliers: Global suppliers have moderate bargaining power due to availability of raw materials from multiple sources.
  • Threat of new substitutes: Substitutes such as polycarbonate and acrylonitrile butadiene styrene offer less threat due to difference in properties.
  • Competitive rivalry: The market is consolidated with major players differentiating through quality and innovation.

Key Takeaways

The global methyl methacrylate market is expected to witness high growth.

Regional analysis:  Asia Pacific dominates the global methyl methacrylate market led by China and India owing to high consumption in construction and automotive industries.

Key players related content comprises Key players operating in the methyl methacrylate market are BASF SE, Evonik Industries AG, Arkema Group, The Dow Chemical Company, Akzo Nobel N.V., Sumitomo Chemical Company Limited, Chi Mei Corporation, Huntsman Corporation, Kolon Industries, Karl Jungbecker GmbH & Co. KG, Dhalop Chemicals and Saudi Methacrylate Company.